18 Jun 2018 11:10am
WINDHOEK, 18 JUNE (NAMPA) The Meat Corporation of Namibia (Meatco) has withdrawn its earlier implementation of zero-rated Value Added Tax (VAT) on all cattle transactions with the Windhoek abattoir.
In a media statement on Monday, Meatco confirmed that it was reversing its earlier announcement to that effect as implemented on 15 April 2018.
As such, the corporation has reinstated the 15 percent VAT levy on cattle procured at its abattoir.
The development, according to Meatco, was necessitated by different reactions and interpretations following the directive, which prompted the company to put the implementation of the zeo-rated VAT on hold.
According to the statement, the decision to place the zero-rated VAT implementation on ice also received the blessing of the Commissioner for Inland Revenue in the Ministry of Finance, Justus Mwafongwe, who also noted that there is confusion regarding the issue.
Meatco received many different reactions and interpretations following the implementation of the directive, which prompted management to set up a meeting with the Commissioner to shed more light on the interpretation of the Act and directive issued in regard of the zero-rated VAT and the practice of self-invoicing.
During the meeting, the Commissioner informed Meatco that he has received a similar request from the industry to shed more light on the directive issued, the statement noted.
The payment of 15% VAT on all cattle transactions at the abattoir will be in force until the industry-led process of clarifying the intention of the directive has been finalised, Meatco announced.
All cattle delivered to the abattoir from 15 April 2018 onwards and invoices subsequently that have been zero-rated will thus be re-calculated and sent out to producers within the month.
All monies due will be paid at the end of June 2018. Cattle delivered to Meatco from 10 June 2018 will be invoiced including 15% VAT going forward, noted the statement.